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SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis

NASDAQ:SHLS - Nasdaq - US82489W1071 - Common Stock - Currency: USD

5.115  +0 (+0.1%)

Fundamental Rating

6

Overall SHLS gets a fundamental rating of 6 out of 10. We evaluated SHLS against 94 industry peers in the Electrical Equipment industry. While SHLS has a great health rating, its profitability is only average at the moment. A decent growth rate in combination with a cheap valuation! Better keep an eye on SHLS. With these ratings, SHLS could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

SHLS had positive earnings in the past year.
In the past year SHLS had a positive cash flow from operations.
SHLS had positive earnings in each of the past 5 years.
SHLS had a positive operating cash flow in 4 of the past 5 years.
SHLS Yearly Net Income VS EBIT VS OCF VS FCFSHLS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

1.2 Ratios

The Return On Assets of SHLS (2.42%) is better than 77.66% of its industry peers.
SHLS has a better Return On Equity (3.41%) than 73.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.38%, SHLS is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHLS is below the industry average of 9.87%.
Industry RankSector Rank
ROA 2.42%
ROE 3.41%
ROIC 4.38%
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
SHLS Yearly ROA, ROE, ROICSHLS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

1.3 Margins

The Profit Margin of SHLS (4.91%) is better than 78.72% of its industry peers.
In the last couple of years the Profit Margin of SHLS has declined.
The Operating Margin of SHLS (11.29%) is better than 81.91% of its industry peers.
In the last couple of years the Operating Margin of SHLS has declined.
SHLS's Gross Margin of 34.39% is amongst the best of the industry. SHLS outperforms 81.91% of its industry peers.
SHLS's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 11.29%
PM (TTM) 4.91%
GM 34.39%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
SHLS Yearly Profit, Operating, Gross MarginsSHLS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHLS is destroying value.
The number of shares outstanding for SHLS has been reduced compared to 1 year ago.
SHLS has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHLS has an improved debt to assets ratio.
SHLS Yearly Shares OutstandingSHLS Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SHLS Yearly Total Debt VS Total AssetsSHLS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 3.25 indicates that SHLS is not in any danger for bankruptcy at the moment.
SHLS's Altman-Z score of 3.25 is fine compared to the rest of the industry. SHLS outperforms 69.15% of its industry peers.
SHLS has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.92, SHLS belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that SHLS is not too dependend on debt financing.
SHLS's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. SHLS outperforms 57.45% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.92
Altman-Z 3.25
ROIC/WACC0.43
WACC10.28%
SHLS Yearly LT Debt VS Equity VS FCFSHLS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

2.3 Liquidity

A Current Ratio of 2.34 indicates that SHLS has no problem at all paying its short term obligations.
SHLS has a better Current ratio (2.34) than 64.89% of its industry peers.
SHLS has a Quick Ratio of 1.58. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SHLS (1.58) is better than 60.64% of its industry peers.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 1.58
SHLS Yearly Current Assets VS Current LiabilitesSHLS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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5

3. Growth

3.1 Past

The earnings per share for SHLS have decreased strongly by -45.28% in the last year.
The Earnings Per Share has been decreasing by -0.95% on average over the past years.
SHLS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.09%.
SHLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.54% yearly.
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%

3.2 Future

Based on estimates for the next years, SHLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.15% on average per year.
The Revenue is expected to grow by 9.25% on average over the next years. This is quite good.
EPS Next Y12.77%
EPS Next 2Y20.21%
EPS Next 3Y18.44%
EPS Next 5Y13.15%
Revenue Next Year10.72%
Revenue Next 2Y11.19%
Revenue Next 3Y10.77%
Revenue Next 5Y9.25%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SHLS Yearly Revenue VS EstimatesSHLS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200M 400M 600M
SHLS Yearly EPS VS EstimatesSHLS Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0.2 0.4 0.6

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7

4. Valuation

4.1 Price/Earnings Ratio

SHLS is valuated rather expensively with a Price/Earnings ratio of 17.64.
SHLS's Price/Earnings ratio is rather cheap when compared to the industry. SHLS is cheaper than 81.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.32. SHLS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.73, the valuation of SHLS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SHLS is valued cheaply inside the industry as 88.30% of the companies are valued more expensively.
SHLS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
Industry RankSector Rank
PE 17.64
Fwd PE 10.73
SHLS Price Earnings VS Forward Price EarningsSHLS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHLS indicates a somewhat cheap valuation: SHLS is cheaper than 76.60% of the companies listed in the same industry.
93.62% of the companies in the same industry are more expensive than SHLS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.56
EV/EBITDA 16.9
SHLS Per share dataSHLS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SHLS may justify a higher PE ratio.
SHLS's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y20.21%
EPS Next 3Y18.44%

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0

5. Dividend

5.1 Amount

SHLS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SHOALS TECHNOLOGIES GROUP -A

NASDAQ:SHLS (6/16/2025, 1:03:07 PM)

5.115

+0 (+0.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)08-04 2025-08-04/amc
Inst Owners116.37%
Inst Owner Change2.15%
Ins Owners0.76%
Ins Owner Change13.15%
Market Cap855.07M
Analysts77.78
Price Target6.43 (25.71%)
Short Float %9.6%
Short Ratio2.28
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.11%
Min EPS beat(2)-23.86%
Max EPS beat(2)-18.35%
EPS beat(4)1
Avg EPS beat(4)-9.26%
Min EPS beat(4)-23.86%
Max EPS beat(4)25.69%
EPS beat(8)4
Avg EPS beat(8)-3.89%
EPS beat(12)8
Avg EPS beat(12)8.82%
EPS beat(16)11
Avg EPS beat(16)3.62%
Revenue beat(2)2
Avg Revenue beat(2)4.38%
Min Revenue beat(2)2.62%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)4.45%
Min Revenue beat(4)1.47%
Max Revenue beat(4)7.56%
Revenue beat(8)5
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)2.33%
Revenue beat(16)9
Avg Revenue beat(16)1.09%
PT rev (1m)2.94%
PT rev (3m)-3.23%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)9.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.26%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)9.56%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.92%
Valuation
Industry RankSector Rank
PE 17.64
Fwd PE 10.73
P/S 2.2
P/FCF 11.56
P/OCF 10.29
P/B 1.53
P/tB 1.9
EV/EBITDA 16.9
EPS(TTM)0.29
EY5.67%
EPS(NY)0.48
Fwd EY9.32%
FCF(TTM)0.44
FCFY8.65%
OCF(TTM)0.5
OCFY9.72%
SpS2.33
BVpS3.34
TBVpS2.69
PEG (NY)1.38
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.42%
ROE 3.41%
ROCE 6.2%
ROIC 4.38%
ROICexc 4.61%
ROICexgc 5.51%
OM 11.29%
PM (TTM) 4.91%
GM 34.39%
FCFM 19.03%
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexcg growth 3Y-14.52%
ROICexcg growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score5
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.92
Debt/EBITDA 2.5
Cap/Depr 70.63%
Cap/Sales 2.35%
Interest Coverage 3.9
Cash Conversion 146.25%
Profit Quality 387.85%
Current Ratio 2.34
Quick Ratio 1.58
Altman-Z 3.25
F-Score5
WACC10.28%
ROIC/WACC0.43
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
EPS Next Y12.77%
EPS Next 2Y20.21%
EPS Next 3Y18.44%
EPS Next 5Y13.15%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
Revenue Next Year10.72%
Revenue Next 2Y11.19%
Revenue Next 3Y10.77%
Revenue Next 5Y9.25%
EBIT growth 1Y-31.89%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year76.96%
EBIT Next 3Y32.67%
EBIT Next 5Y22.66%
FCF growth 1Y4.24%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y10.44%
OCF growth 3YN/A
OCF growth 5Y17.31%